In October 25, 2016, the United States expressed concern about the new export subsidies for India textile and apparel at the meeting of the WTO subsidy and balance measures, and claimed that the subsidy plan made India a step backwards in compliance with the agreement. In accordance with the provisions of article 27.4 of the WTO subsidy and balance measures (SCM), India has 8 years

to gradually eliminate its subsidies to the textile and garment sector. Sources pointed out that the U.S. trade officials said that in 2007 the export competitiveness of India has reached the threshold, should be abolished in 2015 subsidies, and now the transition period has ended, the subsidy issue has lost patience. A senior India trade official said India will refute U.S. claims, said that due to some domestic textile and apparel sector need to support subsidies. India government to blanket, handicrafts and other textiles to include loan interest, the export of specific markets, such as non import tariffs and other subsidies.

A senior trade officials of the India Ministry of Commerce and industry pointed out that the India WTO meeting rejected the U.S. claim, India reached export competitiveness in 2010 than in 2007. The India authorities have said that most of the export subsidies to the textile and garment sector have been lifted, and that they will be abolished by 2018. The Department provides 45 million jobs and accounts for 14% of the total exports of the country.

India will carry out bilateral consultation and the United States, that support and some parts of the government to hire a large number of personnel of textiles and clothing industry. According to the provisions of article 27.6 of the SCM agreement, if the development of China members (per capita annual income of less than $1000) to export a product for 2 consecutive years has accounted for the products in more than 3.25% of world trade in, the products that have export competitiveness. In accordance with Article 27.4 of the agreement, in 8 years, in a gradual manner, and gradually eliminated its export subsidies.